Commerzbank: RBA “Hawkish Pause” will Limit Aussie Fall

The RBA paused interest rate hikes today and the Australian dollar reacted negatively to the decision.
Economists at Commerzbank said that while the RBA paused on rate hikes, it appeared to be quite hawkish in its statement.
The central bank said further tightening of monetary policy may be necessary.
However, much will depend on future data releases.
So all in all, a hawkish pause.
That could limit AUD/USD‘s losses as the Federal Reserve has also paused its rate hike cycle and it is far from a fait accompli that the Fed will restart its rate hike cycle in July.